GUE completes uranium drill program

Our North American uranium Investment Global Uranium and Enrichment (ASX: GUE) has announced the successful completion of its maiden 25-hole, 3,200m drill program at the 100%-owned Maybell Uranium Project in Colorado, USA.

High-grade intercepts including:

• 3.2m at 0.091% (906ppm) U3O8 from 38.2m in MB-029, including
  • 1.3m at 0.189% (1,885ppm) U3O8 from 38.4m
• 6.5m at 0.077% (771ppm) U3O8 from 32.8m in MB-038, including
  • 1.1m at 0.151% (1,509ppm) U3O8 from 32.9m and
• 1.7m at 0.135% (1,347ppm) U3O8 from 37.3m
• 2.3m at 0.061% (613ppm) U3O8 from 44.4m in MB-028, including
  • 0.9m at 0.114% (1,136ppm) U3O8 from 44.7m

The GUE share price has been on a nice run over the last three months, and after today’s results we’re now looking forward to another drill program at Maybell.

We note that GUE has only tested ~10% of the entire claim block - which we think bodes well for future exploration efforts.

With the drill program now complete, GUE can incorporate both historical and new drilling data to underpin a maiden JORC resource estimate for Maybell.

This will further grow GUE’s pounds in the ground and we’ll be watching to see where the resource falls in the range of GUE’s exploration target at the project which was 4.3 to 13.3 million pounds of uranium.

How does this news impact our GUE Investment Memo?

We see recent drill results from Maybell as reducing exploration risk somewhat, as high grade mineralisation was found.

Exploration Risk

There is no guarantee that GUE’s upcoming drill programs in North America are successful and GUE fails to find economic uranium deposits.

Source: GUE Investment Memo 20th February 2023

What’s next for GUE?

🔲 Maybell JORC Resource (coming months)

GUE plans to prepare a maiden mineral resource estimate for Maybell.

We covered that drilling in our latest GUE note:

GUE delivers high grade uranium drill results - uranium price peeks higher.

Depending on the resource size and economics, next steps could potentially include additional drilling in 2025 and a scoping study to evaluate development options.

🔄~52Mlb Resource Scoping study (coming months)

A Scoping Study is due shortly at GUE’s advanced ~52Mlb JORC resource in another part of Colorado.

GUE indicated in September that the scoping study is due in the “coming months”.

🔄Further updates on uranium enrichment technology (Ubaryon)

We want to see Ubaryon de-risk its enrichment technology both operationally and from a regulatory perspective.

At the same time we are hoping Ubaryon is successful in getting funding either via an Australian Federal government grant or through the US$700M program made available by the US Department Of Energy (DOE).